Picture a couple in Halifax who pay around $1,600 for a two-bedroom apartment, which is the average in Killam’s (TSX: KMP.UN) Halifax portfolio.
Now picture $250 landing in your account each month by investing in Killam, which covers 15% of the rent.
Owning a slice of a landlord such as Killam Apartment REIT is a solid strategy that offers you exposure to the real estate sector and allows you to generate a steady stream of dividend income.
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How much do you need to invest in Killam for $250 a month?
Killam pays $0.06 per unit each month, or $0.72 a year. So, divide the annual payout of $3,000 by $0.72, which translates to 4,167 units. At $17.45 a unit, the total investment amounts to $72,714, which translates to a yield of 4.1%.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Killam Apartment | $17.45 | 4,167 | $0.06 | $250 | Monthly |
Over the past decade, Killam Apartment has returned 114% to shareholders after adjusting for dividend reinvestments. In this period, the broader TSX index has returned 114% since November 2016.
Killam is a growth-oriented Canadian real estate investment trust. It owns, operates, and develops apartments and manufactured home communities, or MHCs. The $5 billion portfolio spans Atlantic Canada, Ontario, Alberta, and British Columbia.
Killam’s management has a three-part plan. First is to grow funds from operations (FFO), the cash earnings measure REITs use. Second is to buy newer buildings and sell noncore assets. Third is to develop new apartments in its core markets
How did Killam perform in Q3?
In Q3 2026, Killam Apartment reported an occupancy rate of 97.3%, up from 97.2% in the year-ago period.
Apartment sales rose 3.3%, and net operating income rose 3%. Across the whole portfolio, same-property NOI rose 2.2%, and net income reached $51.6 million, up from $41.9 million.
However, FFO was flat at $0.34 a unit due to higher interest costs, while a big office tenant left Westmount Place, costing the REIT $840,000. Without the vacant tenant, FFO per unit would have risen 2.2%.
In August, Killam sold $50.5 million of MHC sites. It expects to sell another $50 million of MHC sites this month. Moreover, 3,021 sites worth $93.8 million should close in Q1 of 2027.
CEO Philip Fraser told analysts that Killam has not grown the MHC business in years, so it will recycle the cash into apartments and fund buybacks.
In Q3, Killam bought back 2.4 million units at an average of $18.41. By the end of October, it had spent $88.7 million on 4.9 million units. Today’s $17.45 price sits below that average.
Can Killam keep raising rents in Halifax?
Halifax apartment revenue grew 5.6% in Q3. New buildings there lease similar units for $2,000 to $2,500, and Killam’s rents sit well below this figure.
“We still are very, very affordable and have room to grow,” Fraser said.
Management pegs the gap between current and market rents near 10% across the portfolio. For Halifax, it said the figure is about 16%, after correcting a slide error on the call. SVP of Finance Erin Cleveland expects blended rent increases of 3% to 3.5% in 2027.
What are the risks of buying Killam for monthly income?
There are certain risks Killam stock investors should consider.
- Interest costs: Financing costs rose 9.4% in Q3, and about 12.3% of mortgage debt matures before the end of 2027.
- Debt load: Debt equals 42.8% of total assets, and debt-to-normalized EBITDA is 9.9 times.
- Rising bills: Apartment operating costs rose 4.3% in Q3, and management expects more pressure from property taxes and water.
- Westmount Place: About 250,000 square feet of interest exists on the books, but no new lease was announced.
